Insurance for driving school

Since I was aware that some insurance policies basically exclude coverage for anything that occurs on a "racing surface", I thought I would check the details of my policy (through State Farm).

Exclusion 19 excludes coverage for

Any covered vehicle while it is (a) being prepared for, used in practice for, or operated in any racing contest, speed contest, jumping contest, or any similar contest; OR (b) on a track designed primarily for racing or high speed driving.

As writing, the exclusion would seem to cover even a parked car that was hit if it happened to be parked on a track.

What do people recommend? I assume accidents during driving classes are pretty rare. Is that a correct assumption? Is there driving-school-day or (for the future) autocross-day insurance that serves to cover this exclusion?

Most but not all auto insurance policies exclude anything track related or competitive in nature. There are a number of companies that write track day driving event insurance coverage for vehicle damage. Ontrackinsurance.com, Lockton Affinity, a BMW CCA endorsed firm and others. The coverage, options, etc. vary considerably so read the fine print. Both event and season options are available based on stated values, etc.

We've had a lot of converts in our chapter to Liberty Mutual due to their very good rates and their coverage of your vehicle when participating in HPDEs. I had GEICO previously, and the Liberty Mutual policy was actually slightly cheaper than my GEICO policy, with the added benefit of being covered on the track w/o any additional insurance purchase. Can't beat it.

Please note I have no affiliation with Liberty Mutual other than being a current customer.

Our local Liberty Mutual rep made this pitch to our track guys who participate in HPDEs. The definition that was keyed on in the policies is Liberty Mutual (LM) excludes losses for any person "operating a motor vehicle in a race or speed test;", which we were told is not the definition of an HPDE or lapping day. Now, if someone can tell me that this would not hold up in a court of law and that LM would be able to weasel out of covering us on the track, I would certainly like to hear about that. I have heard from at least one Genesee Valley Chapter member that LM did indeed cover an incident they experienced during a DE at Watkins Glen.

And since I'm sure it's going to come up here, LM does not cover "loss due to or as a consequence of: a. radioactive contamination; b. discharge of any nuclear weapon;" etc., etc.

You can call Liberty Mutual @ 1-800-526-1547 to inquire about their "BMW Performance Insurance".

Strangely (to me), one also cannot get a copy of the actual policy prior to purchasing it. I find that quite strange, but she insisted it was standard practice these days.

I would say that is not a standard practice.

When I moved from MD to SC I asked Nationwide to send me their exclusions before transferring policies. They asked me why? I said, I would just like to read them before I make my decision.

They sent me a pdf of the exclusions. In SC there is still no wording relating to a surface used for racing which pretty much all insurance companies are adopting.
Now maybe it was because I was a current Nationwide policy holder, I don't know.
But I continued with Nationwide. The exclusions still mention, timed, competitive events and preparation for racing. I feel very confident that I am covered. Then again the car I take to the track is not worth that much anymore. I can probably get more money for my diff than the whole car is worth.

There seems to be some odd behavior in the insurance industry in my experience. I too have been told that I could not get a copy of the policy coverage until I purchased it. This seems extremely unlikely and probably in violation of law, but that is what some insurance companies do.

As far as Liberty Mutual covering DE activities, this may be a grey area that is being "ignored" for those few who have an incident up until now? I expect LM will do as virtually all other insurance companies have done and include an exclusion clause for ALL off-highway activities.

My Geico policy written for Washington State has the following exclusion clause:

"We do not cover bodily injury or property damage caused by an auto driven in or preparing for any racing, speed, or demolition contest or stunting activity of any nature, whether or not prearranged or organized."

According to our Chapter Risk Management Officer the operative word is "contest". Our HPDS events are instructional in nature with no timing devices allowed and no trophies or prize money awarded hence they are not a contest.

My Geico policy written for Washington State has the following exclusion clause:

"We do not cover bodily injury or property damage caused by an auto driven in or preparing for any racing, speed, or demolition contest or stunting activity of any nature, whether or not prearranged or organized."

According to our Chapter Risk Management Officer the operative word is "contest". Our HPDS events are instructional in nature with no timing devices allowed and no trophies or prize money awarded hence they are not a contest.

I highly suspect that anyone attempting to collect a claim under the above clause will still run into stiff resistance, mainly due to the "stunting activity of any nature".

I highly suspect that anyone attempting to collect a claim under the above clause will still run into stiff resistance, mainly due to the "stunting activity of any nature".

I'm no lawyer, but there are some on this forum that post often.

Anyone qualified got a legal opinion on the subject?

I do, but it doesn't apply in that state. My qualified NON-legal opinion is that GEICO will do anything they can possibly do to deny coverage for one of our schools. Remember, this is the company that once tried to cancel the policies of radar detector owners and that later gave free radar and laser units to law enforcement agencies [Who then, quite logically, used them to convict folks of speeding, including GEICO customers who then faced rate increases. No underhanded dealing there, huh?] I would RUN, not walk, away from GEICO. In the alternative, I would buy supplemental HPDE insurance so as not to even try to make a claim with GEICO.

My qualified NON-legal opinion is that GEICO will do anything they can possibly do to deny coverage for one of our schools. Remember, this is the company that once tried to cancel the policies of radar detector owners and that later gave free radar and laser units to law enforcement agencies [Who then, quite logically, used them to convict folks of speeding, including GEICO customers who then faced rate increases. No underhanded dealing there, huh?] I would RUN, not walk, away from GEICO. In the alternative, I would buy supplemental HPDE insurance so as not to even try to make a claim with GEICO.

Amen. I have loathed these scrofulous mullets for years. . . Progressive for similar reasons. These days I go out of my way to stomp on every green lizard I see.

Satch Carlson

"The first failure of communication is the belief that any is taking place."

I haven't been able to find the clause in my Liberty Mutual policy which I referred to earlier that excluded racing, even after re-reading it many times over.

I the only mention I've ever seen of the word 'racing' was a draconian clause that excluded coverage if you were even at a "racing facility". Basically, they wouldn't cover your street car, camper, or whatever if you drove to the track to watch. Morons.

Otherwise, look for "competition" or "timed". These are the words that 'CCA escapes with our sometimes-obsessive concentration on education, not racing. If your policy did have a "racing" exclusion, that doesn't preclude coverage for HPDEs because they are most definitely not racing. As organizers, we don't even want you to use the word when talking about them.